Knowing what will happen to cash flows in all situations means you can act to prevent liquidity shortfalls. Driver-based forecasting analysis enables you to model various cash flow forecasting scenarios and understand the impact on cash flows.
We know the frustration that can come from reworking budgets into cash forecasts. CashAnalytics makes it easy to break the business budget into its constituent parts to inform the forecasting process.
CashAnalytics enables business drivers (days sales outstanding, payment terms, unit economics, etc.) to be used to build a base case forecast quickly and easily.
This modelling functionality enables you to build a relatively complex data model in the fraction of time that it would take using traditional methods.
When integrated into the holistic planning process, these scenarios can then be used to measure the impact of various changes, e.g. longer/shorter payment terms, price increases/decreases, supplier costs, etc. on revenues and cash flows.
As all components and drivers are fully reusable, they do not have to be re-built for refreshing forecast versions. Therefore, as data is refreshed, each scenario can be tested again and the impact on revenues and cashflows easily understood.
Being able to accurately measure the cash flow impact of various future scenarios vastly aids strategic planning. Additionally, during a crisis event, the treasury team will be able to quickly advise the business what needs to happen to maintain sufficient cash levels.
